Ryanair Corporate Structure Essay

5. GROUP STRUCTURE

Ryanair corporate structure includes Board of Directors which comprises of 13 members and one of them is the Chief Executive officer, Michael O' Leary. Michael O' Leary is the CEO of Ryanair as well of Ryanair holding. The Board is also a member of different committees like Executive Committee, Nomination Committee, Audit Committee, Air Safety Committee and Remuneration Committee. Apart from the Board of Directors, the corporate structure also include Chief operating officer, Chief technology officer, Chief Marketing officer, Company Secretary, Chief Commercial officer, Chief Financial officer and Chief People officer. Ryanair have 13000 skilled employees.There are 3 different Laws and Regulations which are followed by the

Accounts receivables has fallen from 5.2 to 3.3 days indicating that Ryanair has become more efficient over the last number of years in payment collection most likely due to the implementation of new technological payment and online systems. Furthermore, a good indication of a great working relationship with creditors (and thus access to credit) is that there seems to be some liberal flexibility in accounts payable turnover. We were interested in investigating how long it would take the company if it devoted its cash flow entirely to servicing its debt. Thus, cash flow to debt above indicates that Ryanair is in a great position to service its debt and that it is comfortably capable of taking on more. Moreover, cash flow to capital expenditures has moved up which signals that the company is becoming more efficient at funding daily operations. Having considered a liquidity analysis we were also satisfied that the company had sufficient access to lines of credit, undrawn facilities and excellent relationships with financial institutions in the market. However, as we approached Ryanair from a Fitch assessment standpoint, we placed greater weight on cash-flow measures which would allow us to better understand it's ability to service its debt. To that end we discussed FFO, cash flow from operations, free cash flows and changes in working

Indeed, an increasing number of institutions have sought to be rated by more than one organisation as doing so can decrease borrowing costs (Jewell & Livingston, 1999). Both Fitch and Standard & Poor have relatively similar methodologies. Fitch encompasses a number of areas of investigation (as discussed above) such as a sector and business analysis, management and governance overview, geographical considerations, group structures as well as financial dynamics.

S&P follows a similar sequence of events in that two primary aspects are investigated - namely, business considerations (country risk, competitive environment and market position) in addition to financial risk (flexibility, leverage, profitability and projected growth). These are then used in determining an initial “anchor” rating which proceeds to be adjusted through a series of modifiers that enables the depiction of the firms true position. These points or “notches” add or subtract using liquidity position, financial policy, ratio analysis and a credit diversification analysis to the initial